VRSK – Market expectations are for slight Uniform ROA declines, but management is confident about their growth opportunities, acquisitions, and cloud migration

• Verisk Analytics, Inc. (VRSK:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 30.8x Uniform P/E. Even at these levels, the market has somewhat bearish expectations, but management is confident about their growth opportunities, their Genscape and FAST acquisitions, and their migration to cloud
  
  

• Specifically, management is confident that they had organic revenue growth of 6.9%, that their customers’ drive towards automation brings them increased opportunities, and that the sale of their compliance background screening business allows them to access important data sets in a more capital efficient manner. In addition, they are confident that the integrations of Genscape and FAST are on track, with respect to everything from costs to sales, and that FAST offers a flexible policy administration system without large upfront capital commitments. Moreover, they are confident that their multi-cloud strategy aligns their migration approach with customer requirements, that their migration to cloud has the full support of customers, and that their retirement of premise dimensions will occur in chunks. Finally, they are confident in their ability to grow EBITDA margin in excess of their revenue growth